Indian F1 Grand Prix: No racing in the foreseeable future

This is a discussion on Indian F1 Grand Prix: No racing in the foreseeable future within Int'l Motorsport, part of the Motor-Sports category; Law change paves road for India GP return
India has moved a step closer towards securing its return to the ...

India has moved a step closer towards securing its return to the Formula 1 calendar, after being axed from the 2014 schedule

New Delhi hosted three races between 2011 and last year, but the Grand Prix will be absent from the Buddh circuit this season.

Many believe the restrictive government’s import laws, meaning cars and equipment were held up in customs and subject to hefty duties, contributed to the demise of Formula 1 in India.

But news this week indicates that the country may be paving the road for the return of the Grand Prix.

The Times of India reports that race equipment will no longer be treated as normal imported cargo, so long as the equipment leaves the country within 30 days.

The foreign trade department confirmed the news.

“The decision will be music to the ears of (race promoter) Jaypee … who have been struggling to deal with rising import duties while organising the Indian Grand Prix over the last three years,” read the Times of India report.

Jaypee chief Sameer Gaur confirmed: “It appears to be a positive development for automobile racing in India. We cannot, however, say more without studying the (department’s) order.”

And Indian motor sport federation chief Vicky Chandhok added: “I welcome this decision to modify the import policy for cars and bikes for racing events.

“This will pave the way for India to host many more world class international motor sport events.” (GMM)

According to a Reuters report, F1 boss Bernie Ecclestone has ruled out Indian Grand Prix's return in 2015.

Speaking to the news agency, Ecclestone reportedly said that there was never a plan to have the Indian GP return in F1's 2015 schedule. "At the moment, India won't be on for next year for sure. Probably 2016," he was quoted as saying.

The 83-year-old dampened Indian hopes of the Buddh International Circuit hosting a race again next year after being dropped from the 2014 championship. "At the moment, India won't be on for next year for sure," said Ecclestone. "Probably 2016 … they're gradually getting over all the bureaucracy with the tax position inside the country and the general finance."

Ecclestone said in November that a deal had been done for the Indian Grand Prix to return in 2015 and for six years beyond that, if tax problems with the country's authorities could be overcome.

Problems over taxation, with Formula One classified as entertainment rather than a sport in India, as well as the considerable bureaucracy to be overcome in bringing equipment into the country, have been seen as obstacles to the race returning.

India will forever be a cricket-crazy country, and motor-racing will always be second (or 3rd, 4th, ..........., nth) fiddle.

Bernie sees that, and has moved on to other places that can throw money at him. There are lots of places that are willing to fork out the money and bend rules to accommodate him, which India won't (and shouldn't do). I wouldn't hold my breath for another Indian GP to happen.

There are lots of places that are willing to fork out the money and bend rules to accommodate him, which India won't (and shouldn't do). I wouldn't hold my breath for another Indian GP to happen.

If you are referring to the taxation rules then I don't agree with you. How can Govt. of India classify F1 as entertainment?

Secondly the issue is with getting the equipment into the country for less than a week. Why should tax be levied for this when other countries are not.

I don't get the logic. The revenue generated in terms of tourism, travel, advertisements, logistics and what not is quite significant so the govt. is only hurting itself. Thousands of people travelling for a race, hotels booked out (tax on the rooms goes to govt), then transport services, then tourism and much more.

On top of the above they want tax on the temporary equipment and cars brought in.

If you are referring to the taxation rules then I don't agree with you. How can Govt. of India classify F1 as entertainment?

Secondly the issue is with getting the equipment into the country for less than a week. Why should tax be levied for this when other countries are not.

I don't get the logic. The revenue generated in terms of tourism, travel, advertisements, logistics and what not is quite significant so the govt. is only hurting itself. Thousands of people travelling for a race, hotels booked out (tax on the rooms goes to govt), then transport services, then tourism and much more.

On top of the above they want tax on the temporary equipment and cars brought in.

Not just the tax part. I can't find the exact article right now, but didn't the organizer want a tax break for hosting the event too?

I'm not in favor of ridiculous taxation (like the equipment tax the govt wants to levy), but also not in favor of handing out breaks to over-ambitious projects that haven't a hope in hell of turning a profit, ever. The organizer made his buck using the F1 event to sell real estate in the area, and now wants a handout to keep the actual event going. Why?

Taxation debate aside, India doesn't have a mainstream motor-racing tradition (like some European nations), and it's difficult to support an uber-expensive event long-term with a limited fan-base. Bernie was lured in by the big population, but probably realized the majority is either disinterested or just can't afford it. Though I don't believe for a second the organizer has lost anything out of this, they really should've been more diligent in dealing with Bernie. The man is infamous for changing his mind faster than you can say M-O-N-E-Y, and there are enough disowned and forgotten F1 venues around the world testimony to that, while Bernie wants to take F1 to Azerbaijan according to latest news.

As was generally presumed to be the case the second the Indian Grand Prix dropped off the provisional 2014 calendar, the one-year hiatus now looks like becoming indefinite. Bernie Ecclestone said as much last week, when the F1 boss pointed to the on-going difficulties with the Indian tax authorities as a key cause of the race's disappearance.

With no alternation plans for the Greater Noida event, F1 insiders know that a rest is as good as a termination: with other countries (still!) queuing up to pay our oh-so-reasonable hosting fees there is no reason for a financially beleaguered event to return to the calendar after a break, no matter how brief.

Which is why the blame game has started. Ecclestone points to India's central government, and the bizarre decision to class Formula One as a form of entertainment, and not a sport. (Could the Indian authorities possibly have had foreknowledge of the entertainment-centric plan to introduce double points at the season finale?)

Narain Karthikeyan, the man who made history as India's first F1 driver, also blames the Indian government, although as far as the ex-HRT man is concerned, taxation was only part of the problem. Speaking to reporters at a promotional event over the weekend, Karthikeyan also blamed the local authorities for poor promotion.

"F1 is an elitist sport," he said. "But it has a huge fan following in India, especially in states like Kerala. But the fans need to be educated more about this sport so that they can enjoy it in the right spirit. But sadly I have not seen any effort from the authorities to popularize it."

With the greatest of respect, Karthikeyan is wrong. While the tax issues are certainly the responsibility of the local government, when it comes to promoting races in countries where Formula One does not have a dedicated grassroots following, it is the sport that has failed to adequately promote itself.

India is but one example - we can also add Korea, China, and Turkey to the recent list of 'could do betters'. Instead, we tend to confine promotional activity to a short period surrounding the race, while ignoring the benefits of a sustained campaign.

It is not enough to arrive with a flourish, dominate headlines for five days, and then disappear. Instead, teams should be working with local media outlets to drip feed F1 stories over a period of months, building a knowledge base while stimulating interest. Promotional events should then reach a crescendo in the lead-up to a grand prix, adding to the excitement of a race coming to town.
Red Bull do a decent job with their show car team, demonstrating the capabilities of a Formula One car in unusual environments, but it is not enough. They are but one team of a list of eleven, and the bulk of their rivals confine promotional activities to meet and greets and local landmarks in the days immediately preceding a race.

Speaking last year about the loss of the Indian Grand Prix, Sauber team principal Monisha Kaltenborn nailed it when it came to Formula One and opportunities lost. "I think it is very difficult once when you leave a country to come back to it - especially where we have not really managed to establish the sport," she said. "We have not been able to market ourselves properly in [India]. We have not been able to convince that many Indian companies. You can count the Indian companies that are in F1 on one hand. We've somewhere collectively failed to do more."

To fail in one of the world's largest emerging markets is a particularly black spot in F1's track record of sustained promotion. We like to think that our host countries need us more than we need them. We are wrong. And until Formula One stops playing a collective game of ostrich, burying our heads in self-important sand, the mistakes made in India (in Turkey, in South Korea…) will be repeated in Sochi, Baku, and wherever else we decide to build the white elephants of the future.

The Indian Grand Prix is expected to return in 2016 as a “fruitful” meeting between Formula One boss Bernie Ecclestone and race promoters has prepared the ground for the comeback of the high-profile event.
The meeting was held on the sidelines of the inaugural Russian Grand Prix in Sochi, last month.
The Indian Grand Prix was dropped from the 2014 calendar after three successful seasons, owing to tax and bureaucratic hurdles, leaving fans and experts to wonder whether the elite global event will comeback at all. The race has already been ruled out for 2015.
The issues surrounding the Grand Prix remain but Ecclestone-led Formula One Management (FOM) and race promoters Jaypee Sports International (JPSI), headed by Sameer Gaur, first want to honour the five-year contract and then work on securing the long-term future of the event.
“We (Sameer and I) had a good meeting in Russia. I was assured that the tax and other related problems will be sorted out in due course and then we are good to go back. It is too late for 2015 now, so we are working on 2016,” Ecclestone told PTI from his London office.
Gaur, on his part, said, “Formula 1 remains very important for us. Unfortunately, because of the circumstances we could not do the race this year but I see the situation improving soon. The important thing is that we and FOM are on the same page. 2015 looks tough as the calendar is more or less final, so we should look at 2016 as the year for the race.”
Only time will tell how Ecclestone accommodates India on the ever crowded calendar. 2014 will see 20 races with the return of Mexico round and the number could up to 22 in 2016 with India and Azerbaijan waiting to host the F1 caravan.